The "Dogs of the Dow" for 2024, determined at the end of 2023 based on their dividend yields, include Walgreens Boots Alliance (WBA), Dow Inc. (DOW), and 3M (MMM).
Understanding the Dogs of the Dow Strategy
The Dogs of the Dow is an investment strategy that involves purchasing the ten stocks within the Dow Jones Industrial Average (DJIA) that finished the previous year with the highest dividend yields. The underlying theory is that these high-yielding stocks are often undervalued, mature companies that may be poised for a rebound. Investors typically hold these stocks for a year and then rebalance their portfolio by identifying the new set of high-yielders.
The 2024 Dogs of the Dow
For the year 2024, the companies identified as the "Dogs" that were expected to perform based on their high dividend yields at the end of 2023 were:
- Walgreens Boots Alliance (WBA)
- Dow Inc. (DOW)
- 3M (MMM)
While the traditional "Dogs of the Dow" strategy typically involves ten stocks, the provided reference highlights these specific companies as part of the 2024 cohort, particularly noting their performance.
| Company | Ticker |
|---|---|
| Walgreens Boots Alliance | WBA |
| Dow Inc. | DOW |
| 3M | MMM |
Performance Insights for the 2024 Dogs
The performance of these 2024 Dogs, which were the highest-yielding stocks in 2023, did not meet expectations. On average, this group experienced a 1% loss during 2024, excluding dividends. This contrasts with the strategy's aim for a potential rebound. Looking ahead to the next cycle, Merck, McDonald's, and Procter & Gamble replaced Walgreens, Dow Inc., and 3M in the subsequent "litter of Dogs," indicating the dynamic nature of this annual investment strategy.
For more detailed information on the Dogs of the Dow strategy and specific stock performances, you can refer to financial publications like Barron's.
